Foreign Direct Investment and Sustainable Tourism: A Systematic Literature Review

Eleni E. Anastasopoulou (), Georgios A. Deirmentzoglou, Patroklos Patsoulis, Eirini Vlassi and Ioannis Anastasopoulos
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Eleni E. Anastasopoulou: Neapolis University Pafos
Georgios A. Deirmentzoglou: Neapolis University Pafos
Patroklos Patsoulis: International University of Rabat
Eirini Vlassi: University of the Aegean
Ioannis Anastasopoulos: University of Piraeus

A chapter in Synergizing Management, Culture, and Arts for Tourism Development - Vol. 1, 2026, pp 243-256 from Springer

Abstract: Abstract This study conducts a systematic literature review to explore the complex relationship between foreign direct investment (FDI) and sustainable tourism. As tourism plays an increasingly vital role in global economic growth, FDI has emerged as a key driver, contributing to infrastructure development, employment generation, and the diffusion of knowledge and innovation. However, its impacts are not uniformly positive. While FDI can foster economic growth and environmental innovation, it also carries risks of ecological degradation, social inequality, and policy misalignment if not adequately governed. Drawing on 43 peer-reviewed studies published over the past two decades, this review identifies and synthesizes three thematic areas: (1) the role of FDI in tourism-led economic growth and development, (2) the environmental consequences of FDI in tourism contexts, and (3) the socio-cultural, institutional, and policy dynamics associated with tourism-related FDI. The findings suggest that the sustainability outcomes of FDI depend largely on regulatory quality, institutional capacity, and the inclusiveness of development strategies. The paper concludes with policy recommendations aimed at aligning FDI with sustainable tourism objectives, including stronger governance mechanisms, community participation, and environmental safeguards.

Keywords: Foreign Direct Investment (FDI); Sustainable tourism; Environmental sustainability; Economic growth; Tourism governance; Tourism policy (search for similar items in EconPapers)
JEL-codes: F21 Q56 Z32 (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-3-032-17545-8_12

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DOI: 10.1007/978-3-032-17545-8_12

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